April 1 (Bloomberg) -- New York's City Council asked the Legislature to enact Mayor Michael Bloomberg's ``congestion pricing'' proposal, which would charge motorists fees for entering Manhattan's busiest sections on weekdays.

The council's vote of 30 to 20, one of the narrowest of the Bloomberg administration, came in the form of a Home Rule resolution asking state lawmakers to approve a Senate bill amended yesterday by Governor David Paterson empowering the city to impose the traffic plan.

The council's action moves the issue to the Legislature, which has been enmeshed in negotiations over a budget overdue for the fiscal year that begins today. The U.S. Department of Transportation has offered the state $354 million in mass transit aid if the plan is approved by April 7.

``It is now completely clear that congestion pricing has the strong backing of the people of New York City,'' Bloomberg said, who listed among its supporters labor and business leaders, environmentalists, and transit advocates.

He said the proposal would cut traffic, reduce climate- changing carbon gas emissions and provide revenue through its fees for improved mass transit.

If approved by lawmakers and the governor, the plan would institute a system of electronic toll monitors and license-plate reading cameras at the periphery of the ``congestion zone,'' from 60th Street south. Beginning by March 31, cars would be charged $8, trucks $21, to enter from 6 a.m. to 6 p.m. Proponents say it would raise $491 million, all dedicated to improve and maintain the largest U.S. public transit system, which moves some 4.5 million riders a day.

Low-Emission Vehicles

Low-emission trucks would pay $7 and taxis and limousines would be assessed a $1 surcharge for each trip that begins or ends in the zone. Motorcycles and scooters would pay $4.

Motorists in vehicles not equipped with E-ZPass electronic toll-paying devices would need to remit their fees through the mail or Internet within four days or pay a $65 fine. After 30 days, the fine would increase to $115 days, and after another 35 days, $140. Motorists would incur additional penalties as a scofflaw when their payments are more than 95 days late, according to the Senate bill.

Bloomberg, 66, cited the efforts of council Speaker Christine Quinn, a Manhattan Democrat who shepherded the bill through months of negotiations that culminated in a 14-hour hearing last week.

``She managed to get 30 votes when I think most people did not expect this to pass,'' Bloomberg said.

`Tough decision'

Quinn, 41, praised council members who approved the bill, noting that two-thirds of them came from outside Manhattan, including seven from the Bronx and 13 from the boroughs of Brooklyn and Queens, where opposition was strongest.

``This is a tough decision, it's a bold decision,'' Quinn had said before the vote. ``Rarely are ideas that push the envelope an easy decision.''

Bloomberg and Quinn didn't say what might happen if lawmakers vote for a congestion pricing law that differs from the Senate bill the council approved. Each called upon the state Assembly, led by Speaker Sheldon Silver, a Manhattan Democrat, to pass the city's preferred measure.

The council's measure has the backing of Republican state Senate Majority Leader Joseph Bruno. Silver hasn't stated his position, but has said he won't address congestion pricing until after the state budget has been enacted.

Port Authority Payments

The bill approved by the city includes provisions the governor added and sent to the Senate yesterday that would exempt handicapped drivers and provide tax credits to low-income commuters. It extends the time a driver without an E-ZPass device has before paying the congestion fee, guarantees workers be paid ``prevailing wages'' on work done to further the plan and calls upon the Port Authority of New York and New Jersey to pay $1 billion of its toll revenue over five years to New York's Metropolitan Transportation Authority. The Port Authority operates toll crossings linking New York and New Jersey.

The Port Authority amendment came after opponents objected to a provision in the plan that offered drivers from New Jersey an off-set of the $8 tolls they pay upon crossing the Hudson River into Manhattan against the congestion pricing fee if their cars are equipped with E-ZPass devices.

Port Authority spokesman Steve Sigmund said that while the agency's commitment to mass transit would benefit the MTA's goals of reducing traffic and enhancing mass transit, the bi- state agency, created through an act of the U.S. Congress, wouldn't be bound by the New York Legislature.

``Any decision about how the Port Authority spends its resources will be made by our board in consultation with our two governors,'' Sigmund said.

Future Commuter Fees

Bloomberg said the plan would remain legal even if a court declared unconstitutional the provision regarding the Port Authority. He said if the Port Authority refused to agree to the $1 billion contribution, the city would impose an extra $3 charge on drivers entering the congestion zone from New Jersey.

It has been criticized by some lawmakers from the city's suburbs and outer boroughs, who say commuting drivers shouldn't pay to subsidize subways and buses they don't use.

``It creates a city of haves and have-nots,'' said Councilman Lewis Fidler, a Brooklyn Democrat. He said the bill ``tells those who can afford it may come and those who cannot afford it may not.''

Most of the votes against the plan came from council members who said they didn't believe the MTA would spend the plan's proceeds to improve mobility.

``The MTA has cooked the books, raised the fare, and didn't do anything,'' said Charles Barron, a Brooklyn Democrat, referring to a recent fare increase the agency now says it can't afford to use for service enhancement. ``Don't let them turn the outer boroughs into congested parking lots.''

The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP.

To contact the reporter on this story: Henry Goldman in New York at hgoldman@bloomberg.net.

Last Updated: April 1, 2008 13:48 EDT